WCT sells hotel for RM16.1mil in a related party transaction

Artist impression of WCT Bhd's The Landmark commercial development at Bandar Bukit Tinggi, Klang which is located adjacent to the Aeon Bukit Tinggi shopping centre.

KUALA LUMPUR: WCT Holdings Bhd is selling an eight-storey boutique hotel on 4.17ha in Klang to a company related to its managing director and major shareholder Taing Kim Hwa for RM16.1mil.

The construction and property development firm told Bursa Malaysia that Gemilang Waras Sdn Bhd (GWSB), a wholly owned subsidiary of WCT Holdings’ unit WCT Land Sdn Bhd, inked an agreement on Tuesday to sell the hotel, which is part of its The Lead freehold integrated commercial development, to Beyond Century Sdn Bhd.

Beyond Century is a company related to Taing, who is also a director of GWSB.

WCT also announced that over the preceding 12 months, a company related to Taing (Friendacres Sdn Bhd) and his sisters had bought seven units of The Lead service apartment worth RM3.47mil. These transactions were announced to Bursa Malaysia for the first time.

WCT said its board of directors of WCT (with the exception of Taing, who is interested in the transactions), was of the opinion that they were in the best interest of the WCT group.

“Further, the audit committee, having considered all aspects of the transactions, including the rationale, is of the opinion that they are in the best interest of WCT Group; fair, reasonable and on normal commercial terms; and not detrimental to the interest of the company’s minority shareholders,” it added.

Beyond Century’s purchase is expected to be completed by the fourth quarter of 2018.

WCT shares gained 21 sen to close at RM1.72 on Wednesday, with 9.273 million shares changing hands.